America’s popular sandwich chain, Subway, announced on Thursday that it will be sold to Roark Capital, a private equity firm with expertise in restaurant management. The acquisition is expected to help Subway expand and improve its stores. However, the sandwich chain did not disclose any terms of the deal. Earlier, The Wall Street Journal reported that Roark offered 9.6 billion for the Subway deal.
In a statement issued by Subway, it was announced that Roark is a private equity firm with $37 billion in assets under management. It specializes in investing in franchise and franchise-like businesses, with a focus on consumer and business service companies. They own several restaurant chains, such as Arby’s, Dunkin’, and Buffalo Wild Wings.
Subway CEO John Chidsey, who joined the company in 2019, said, “This transaction reflects Subway’s long-term growth potential, and the substantial value of our brand and our franchisees around the world. Subway has a bright future with Roark, and we are committed to continuing to focus on a win-win-win approach for our franchisees, our guests and our employees.”
The transaction follows Subway’s announcement of their 10th consecutive quarter of positive same-store sales. The company said that it will continue to execute its plans to prioritize sales growth, menu innovation, restaurant modernization, guest experience improvements, and international expansion.
Subway revealed that J.P. Morgan is assuming the role of financial advisor, while Sullivan & Cromwell LLP is serving as legal counsel to Subway. The timing of the acquisition hinges upon securing regulatory approvals and adhering to customary closing conditions.
Started by a 17-Year-Old boy
Subway was established in 1965 and is still owned by its founding families. Interestingly, the company was founded by 17-year-old Fred Deluca along with his family friend Peter Buck. Its global presence is remarkable, with over 37,000 locations scattered across more than 100 nations.